Summary. Introduction

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Responsible

Investing Report

Nomura Asset Management U.K. Limited Nomura Asset Management Singapore Limited Nomura Asset Management Malaysia Sdn. Bhd.

Nomura Islamic Asset Management Malaysia Sdn. Bhd.

3Q 2020

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Page 1 Responsible Investing Report 3Q 2020

Page 2 Nomura Asset Management

Introduction

Nomura Asset Management is committed to Responsible Investment, being a signatory to the United Nations Principles for Responsible Investment (“UNPRI”) since 2011, and has a strong track record of acting in a manner that maximises both the experiences of our clients and the other stakeholders impacted by our investments.

Nomura Asset Management U.K. Limited (“NAM UK”) has been integrating Environmental, Social and Governance (“ESG”) research (both proprietary internal research and external data providers) into all individual global equity investment committee reviews since 2013. Our engagement activity and ESG research has been published publicly online since 2Q16 in an effort to promote transparency and increase the impact of our activity. Whereas, Nomura Asset Management Malaysia Sdn.Bhd.

(“NAMM”) and Nomura Islamic Asset Management Sdn.Bhd. (“NIAM”), as member entities within the NAM group in Malaysia, are also committed to standards encouraged by the UNPRI through its commitment to observe the Malaysian Code of Institutional Investors (“MCII”). Both NAMM and NIAM became signatories of the MCII on 25 April 2017.

The engagement efforts of the NAM UK Fixed Income team have been included within this report since 3Q18, and from 2Q19 has also incorporated the research and engagement processes of Nomura Asset Management Singapore Limited (“NAM SG”) and Nomura Asset Management Malaysia Sdn.Bhd. (“NAMM”). Since 1Q20 the Responsible Investment team of Nomura Asset Management Co., Ltd (“NAM Tokyo”) have also been contributing a selection of engagements with Japanese companies to the report. Through the collaboration of research efforts across offices and asset classes we believe we can maximise the impact of engagement activity and achieve the best outcomes for all stakeholders.

It is our view that Responsible Investment is best undertaken by taking into consideration the impact of a corporation’s existence and the associated investment decisions on all stakeholders, not just ourselves as shareholders and/or bond investors. As responsible investors we must take into account the broader impact of our investment decisions and it is our duty to engage with the businesses we own and/or lend to, and even those we don’t, to push for better practices where necessary. Targets for engagement are identified through our ongoing ESG research programme, which takes into consideration the ESG risks within our client portfolios and ongoing evaluation of the impact that our investee companies have on all stakeholders. An assessment is made as to the severity of the engagement topic and the engagement itself is carried out at the appropriate level. Where we feel our engagement activity is not having the desired effect we will escalate our concerns to more senior management or directly to the board. We are proactive with regards to proxy voting as a means to express our views and we actively seek to collaborate with other investors to maximise the impact of our activity.

"NAM Group"

"NAM"

These references relate to the whole Nomura Asset Management organisation and will generally be used when referring to matters such as investment philosophy, style, company structure and other policies which are consistent across the Group.

"NAM UK"

This refers to Nomura Asset Management UK Limited, the UK based subsidiary of NAM Tokyo. NAM UK will typically be appointed as investment manager and will retain responsibility for the management, control and servicing of the client portfolio and relationship.

"NAM Singapore"

"NAM SG" This refers to Nomura Asset Management Singapore Limited.

"NAM Malaysia"

"NAMM" This refers to Nomura Asset Management Malaysia Sdn.Bhd.

"NIAM" This refers to Nomura Islamic Asset Management Malaysia Sdn.Bhd.

"Our"

"We" This refers to the efforts and practices undertaken within the NAM UK, NAM Singapore and NAM Malaysia offices.

Summary

Over the period 63 companies were reviewed and assigned ESG ratings. Of these, 17 were awarded a rating of ‘N’ (No Issues), 30 a rating of ‘I’ (Issues but Improving), 16 a rating of ‘I’ (Issues, Not Improving). No companies were deemed Uninvestible. In addition, 28 further companies were engaged with, supplementary to full company reviews, to discuss ESG related queries that arose over the period. In total we engaged with 74 companies to discuss ESG concerns.

Of these engagements 7% were focused on Business Strategy, 18% on Social Impact, 27% on Environment, 17%

on Governance, 5% on Financial Strategy and 26% on Dialogue/Disclosure. Of the companies we engaged with, 19 were based in North America, 13 in Europe, 30 Asia ex Japan and 12 within Japan. Responses were received from 57 companies (77% response ratio).

Companies reviewed

N (No Issues) 17

I (Issues, but improving) 30

I (Issues, not improving) 16

U (Uninvestable) 0

Total 63

Engagements

Number of contacts 74

Engaged & responded 57

Engaged with no response 17

Response Ratio 77%

Engagements by Region

Europe 13

North America 19

APAC ex Japan 30

Japan 12

Total 74

Engagements by Subject

Business Strategy 17

Financial Strategy 11

Governance 40

Environment 64

Social 44

Dialogue/Disclosure 61

Engagements by Country

Germany 2

United States 18

Netherlands 1

Britain 6

Spain 1

France 1

Switzerland 2

Canada 1

Taiwan 5

Malaysia 3

Indonesia 3

Hong Kong 2

South Korea 2

Philippines 1

Thailand 1

China 4

Singapore 5

Macau 1

Australia 3

Japan 12

Total 74

Ratings Assigned Over the Period

Engagement Over the Period

Engagement by Region

Engagement by Type N (No Issues)

27%

I (Issues, but improving)

48%

I (Issues, not improving) 25%

Engaged and responded

57 Engaged with

no response 17

Europe 18%

North America 26%

APAC ex Japan 40%

Japan 16%

Bus. Strategy 7%

Fin. Strategy 5%

Environment 27%

Governance 17%

Social 18%

Dialogue/

Disclosure 26%

Please note ‘Engagement by Subject’ does not add up to total number of engagements as company engagements can typically include the covering of multiple topics.

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Notes from our Responsible Investing Research

Supporting Inter-company Collaboration: At Nomura Asset Management, we are committed to using our privileged position as institutional investors to have the greatest positive impact. We realise that we have a unique insight from investing in and analysing many hundreds of companies on ESG grounds, and that we can use this insight to identify companies with weaknesses and connect them with other companies, in different regions and sectors, that might be able to share experiences and support better ESG outcomes. As such over the quarter we embarked on an inter- company collaboration project seeking to connect companies on a non-competitive basis to work together towards better outcomes. We have found the response to the first stages highly promising with a number of companies willing to connect to either share positive experiences to support better outcomes at other companies, or eager to learn how they might support better outcomes from more advanced peers on the sustainability front.

Nomura Asset Management’s 6 Impact Goals: In 4Q19 we introduced NAM’s 6 Impact Goals focused around the most pressing issues facing our world today. Those Impact Goals are closely aligned with the UN’s SDGs, as well as with NAM’s Global ESG Statement. We took into consideration where we believe we as investors can have the biggest material impact. As part of our commitment to deeply integrate our 6 Impact Goals into our processes we strive to further increase our engagements with companies on the selected Goals and work together towards achieving them.

In 3Q20, 20 of our total engagements were directly aligned to one of the identified Impact Goals. Of those 10 were related to Mitigating Climate Change, 7 to Mitigating Natural Capital Depletion and 3 to Eliminating Communicable Disease.

Engagements by NAM Impact Goals

Mitigate Climate Change 10

Mitigate Natural Capital Depletion 7

Eliminate Communicable Disease 3

Mitigate the Obesity Epidemic 0

Global Access to Basic Financial Services 0

Global Access to Clean Drinking Water 0

Total 20

Collaboration – Access to Medical Oxygen: The coronavirus pandemic has brought to light the severity of a lack of adequate access to medical oxygen within emerging economies given the role this can play in improving outcomes for those that experience severe symptoms. Over the quarter we participated in a roundtable led by the Access to Medicine and the Every Breath Counts coalition, for companies, NGOs, donors and investors to openly discuss how stakeholders could work together to tackle this grave issue. Working collaboratively across our firm we were also able to use our influence to support bringing a key player within the medical oxygen space to the table to participate in the conversation. The initiative remains in the early stages but the first steps have been taken and highlight the important role institutional investors can play in supporting better outcomes. More information on: https://

accesstomedicinefoundation.org/news/bridging-the-gap-in-access-to-oxygen-foundation-co-hosts-roundtable-that- identifies-10-key-actions

Mitigate Climate Change 50%

Mitigate Natural Capital Depletion 35%

Elimate Communicable

Disease 15%

Responsible Investing Case Study

Making sure companies monitor and ensure working conditions of employees in their supply chains are at a high enough standard is key for their sustainability.

NAM UK has been invested for a number of years in a global fashion apparel company, which is also one of the largest global employers, with more than 150,000 direct employees and additionally, more than a million being part of its supply chain. Recently a UK online retailer was involved in a significant controversy related to the labour practices in its supply chain in the UK, so we decided to do additional work looking at the apparel companies in our portfolios to understand in more depth how they control and manage their supply chains in order to prevent such problems.

NAM UK engaged with the company to understand the processes they have in place to manage and control their supply chain. They explained to us what their key advantages are. Those being, close proximity sourcing in countries with better labour conditions (more than half of their factories are located in countries close to its head offices) and having very long-term relationships established with suppliers (more than 90% of purchases involved suppliers with whom they have been doing business with for three or more years). Their suppliers have to subscribe to their Code of Conduct for Manufacturers and Suppliers, which defines minimum standards. To verify compliance, the company has carried out more than 50,000 audits on their suppliers and manufacturers, including facilities at every phase of the production cycle, and more than 10,000 traceability audits, which have been done in the last 5 years.

We also decided to set up a call with a global union representing around 50 million workers globally, including the textile and garment industries. The Director of the global union who was contacted by NAM UK, explained that the apparel company, which we are invested in, is one of the global leaders with regards to labour relations and sustainability. They have been leading the way in their sector with agreements to control the supply chain after the Rana Plaza disaster in Bangladesh or more recently, with the ACT (action, collaboration and transformation) plan (see on actonlivingwages.com).

It is a good thing that investors are increasingly aware of reputational risk in this industry. As long-term shareholders, we

believe it is in the best interest of the company to assure the sustainability of its supply chain and make sure all employees

(direct or not) are working under appropriate conditions. This provides benefits in the long term, from avoiding negative

publicity, to increasing flexibility and productivity in the supply chain. We also think this is the right thing to do.

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ISS Climate Impact Assessment – Aggregate Global Equities Holdings

Nomura Asset Management has contracted Institutional Shareholder Services (ISS) to provide Climate related analysis of our portfolios, based on the stock holdings. This section provides key elements of the analysis done on the aggregated holdings of the portfolios managed by the Global Equity team. It is based on a 99.91% coverage of the underlying holdings by ISS.

Portfolio Overview

Comparison of Global Equity holdings Climate performance relative to the MSCI All Country World Index benchmark as defined by the ISS Climate Impact Assessment.

Climate Scenario Analysis

The climate transition will require companies to align themselves with international climate goals and progress on those in the future. Currently 29% of our aggregate holdings by value are committed to keeping to a 2o warming scenario, which compares to 22% for MSCI ACWI. Only 10% of our holdings by value have No Strategy vs 19% for MSCI ACWI.

Our current holdings have an emissions profile consistent with the 2o warming target in the near term, but their expected longer term emissions tradjectory remains too high and by 2036 will not be consistent with that target. To improve this situation is a key objective for our engagement programme and is why we included “Mitigate Climate Change” as an

“Impact Goal” and a focus area for ongoing engagement.

Disclosure Number/Weight

Emission Exposure tCO₂e

Relative Emission Exposure tCO₂e/Mio USD Revenue

Climate Performance Weighted Avg Share of

Disclosing Holdings Scope 1&2 Incl. Scope 3 Relative Carbon

Footprint Carbon

Intensity Weighted Avg

Carbon Intensity Carbon

Risk Rating¹

Portfolio 80.1%/90.1% 279,563 1,355,099 88.03 127.17 94.38 40

Benchmark 56.8%/80.5% 392,912 1,601,604 123.72 215.03 179.31 36

Net Performance 23.3 p.p./9.6 p.p. 28.8% 15.4% 28.8% 40.9% 47.4% –

Source: ISS ESG

Porfolio Compliance with Emission Budget per Scenario

2020 2030 2040 2050

2° 65.02% 83.65% 116.7% 156.5%

4° 61% 60.36% 59.96% 60.25%

6° 58.63% 53.31% 48.26% 45.32%

2036

Until the year 2036, portfolio is aligned with a 2° Celsius warming scenario

Climate Strategy Assessment (% Portfolio Weight)

Portfolio Emission Pathway vs. Climate Scenarios

No Strategy 10%

19%

6% 6%

15% 16%

40% 37%

29%

22%

Portfolio Benchmark

Weak

Strategy Moderate

Strategy Robust

Strategy 2°C Committment

Emission Budget 6°C 600

400 500

300 200 100

2020 2025 2030 2035 2040 2045 2050

Thousands (ICOe)2 0

Emission Budget 4°C Emission Budget 2°C Portfolio Emissions Source: ISS ESG

Sustainalytics Engagement (formerly GES International)

Quarterly Statistics

In addition to the extensive ESG research and engagement activity carried out at Nomura Asset Management, the services of Sustainalytics’ engagement arm (formerly GES International) are used to maximise our engagement voice and ability to push for better practices and fairer outcomes for all stakeholders. The Sustainalytics engagement team has over 40 employees globally dedicated to corporate engagement and represent €1.5 trillion of investments worldwide. We include herein a summary of the engagement activity carried out on behalf of Nomura Asset

Management as at August 2020.

June – August 2020

Cases by Theme

Cases by Sector Cases by Norm Cases by Headquarters

Engagement Performance Overview Milestone Overview

Environmental Social Governance

105 28

51 15%

57%

28%

Total Cases

184 13

New Cases

10 24 16

29

34

13 3

15

9

30

1 Consum. Discret.

Consum. Staples Energy Financials Healthcare Industrials

Materials Real Estate Comm. Serv’s Utilities IT

51

28

78

27 Business

Ethics

Human Rights

Labour Rights Environment

19

74

37 15

39 Africa/

Middle East

Europe

LatAm

& Caribbean

US & Canada Asia/

Pacific Worse

Same Better High

Performance

Medium Performance

Low Performance

37

60

43 3

2

12 1

1 11 48

73

49

Same

Positive Progress in this Quarter

40 5 45

Milestone 5

Milestone 4

Milestone 3

Milestone 2

Milestone 1

30 5 35

47 13 60

18 4

1 7

22 8

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Proxy Voting Record 3Q20

NAM seeks to act in a manner most likely to enhance the economic value of the underlying companies owned on our clients’ behalf. We engage with companies based on our "Ideal Form of Business Management of Investee Companies" in order to enhance our mutual understanding and to seek changes in their company practices. NAM employs the services of Institutional Shareholder Services (ISS) to efficiently apply our proxy voting policy to individual proposals. ISS are provided with comprehensive and proprietary guidelines set out in our proxy voting policy. NAM will closely consider the voting agenda of a company that meets certain conditions (including, but not limited to, the violation of any applicable laws, inadequate board composition, and financial strategies that are not deemed to be in the best interests of shareholders and other stakeholders). Where we believe that a specific agenda item is not in the best interests of shareholders, NAM will decide either to vote against or to abstain from voting on the item. Please see the Nomura Asset Management Proxy Voting Policy for full details.

Voting Data

Over the quarter NAM UK, NAMM and NAM SG voted on 1928 proposals across 74 shareholder meetings and 245 ballots. In total 56% of proposals were director related, with a further 18% in relation to ‘Routine Business’ and 14% ‘Capitalisation’. In total NAM UK, NAMM and NAM SG voted ‘With’ management on 1824 (95%) proposals and ‘Against’ management (or ‘Withheld’ our vote) on 104 (5%) proposals. Examples of where we voted ‘Against’

management, or elected to ‘Withhold’ our vote included:

Voted ‘Against’ the election of a Director at a German Automobile Manufacturer, as the nominee was clearly over boarded

Voted ‘Against’ the approval of allocation of income at a Spanish Specialty Retail business as the company falls on

"cash rich" watch list and the pay out ratio is less than 50%

Proposals Voted on in 3Q20

Proposal subject Count Proportion of

Total Votes

Antitakeover 4 0.2%

Capitalisation 262 13.6%

Directorships 1087 56.4%

Compensation 102 5.3%

Reorg/M&A 108 5.6%

Routine Business 352 18.3%

Health/Environment/Social 0 0.0%

Other 13 0.7%

Total 1928 100.0%

Voting Record vs. Management in 3Q20

With Against

Votes 1824 104

Proportion 94.6% 5.4%

Proposals Voted 'Against' Management in 3Q20

Proposal subject Count Proportion of

Total Votes

Antitakeover 0 0.0%

Capitalisation 0 0.0%

Directorships 38 36.5%

Compensation 58 55.8%

Reorg/M&A 0 0.0%

Routine Business 8 7.7%

Health/Environment/Social 0 0.0%

Other 0 0.0%

Total 104 100.0%

Voting Record vs. ISS in 3Q20

With Against

Votes 1919 9

Proportion 99.5% 0.5%

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ESG Analysis

Anonymous Name

Contact

Type ESG Rating Primary ESG Issues Identified

ESG Opinion for Investment Consideration

Engaged/

Response

Specialty Retail,

Spain Company

ESG team Issues (Improving)

Questions about their control of the supply chain, regarding working conditions, labour wages and sub-contracting. This is related to allegations made on a UK competitor earlier in July.

Company seems to be ahead of peers regarding most ESG issues.

Engaged and response received

Insurance,

Switzerland IR Issues (Not

Improving)

A 14 member board + generous executive pay have been highlighted as part of ESG issues.

No action/improvement over the past few years and no actions evident at

this point in time. Not Engaged

Insurance, United

States IR Issues

(Improving)

ESG issues should be

incorporated into the investment process for their own assets.

Company have stated that they are working towards incorporating ESG criteria into their investment process so at this point we are waiting before any engagement.

Not Engaged

Semiconductors

& Semiconductor, China

Issues (Not Improving)

Significant state ownership and government subsidies. No comprehensive anti-corruption controls. No evidence of conformance to global standards, such as the UNGC. High annual employee turnover (22%).

Investment recommendation -

potential short candidate. Not Engaged

Chemicals,

Netherlands IR No Issues

The materials business does consume oil, but the emissions from oil in chemicals is much lower than in fuel and plastics offers solutions to efficiency challenges like light-weighting.

There is no major ESG consideration regarding the company. In fact it is positive and is a clear candidate for sustainable strategies.

Not Engaged

Pharmaceuticals,

Britain Issues

(Improving)

Moderate controversies related to false marketing and failure to disclose product safety information. Experienced restructuring and layoffs recently.

Lagging peers in efforts to attract/

retain talent.

ESG issues are improving. Most lawsuits related to three medications are now closed. UK authorities closed investigations into China bribery allegations. Internal framework score has increased.

Engaged but no response

Specialty Retail,

United States Company

Issues with destination of unsold inventory and labour standards in suppliers factories.

The fashion industry generates pollution and waste. Its production tends to happen in low-cost factories with patchy legal compliance.

Company seems to be better than most peers when it comes to E&S.

Professional Services, Switzerland

IR No Issues

Very limited environmental impact given business model. Contributes considerable value to society through supporting employment particularly across blue collar roles. MSCI flags data privacy risks.

Do not see considerable investment risks from ESG assessment (pending feedback from the company on personal data management policy).

Contributes positively to multiple SDGs.

Anonymous Name

Contact

Engaged/

Response

Banks, Netherlands Issues

(Improving)

The company has faced allegations of money laundering recently and this seems to hang over its generally strong corporate governance. CEO pay is not linked to sustainability targets.

Strong sustainability targets and criteria in lending. Recent AML controversies must be balanced with good overall corporate governance.

High retail exposure could lead to elevated credit losses.

Banks, Sweden Issues

(Improving)

Outstanding AML issues, however new management and conclusion of Swedish FSA fine has mitigated some of the fallout.

AML issues remain outstanding and an overhang on the share. Large retail and mortgage market exposure could lead to deflationary pricing and elevated credit losses.

Not Engaged

Banks, Sweden Issues

(Improving)

The company is generally past AML issues with the 1bn SEK fine by Swedish FSA. Higher employee attrition vs. industry average and local peers is worth looking into.

AML issues are generally behind them, however always a potential issue with financial services companies. This must be balanced by TOP MSCI rating on AML policies.

IT Services, United

States No Issues

The company fits our financial inclusion impact goals through its core banking outsourcing service.

Works with small and mid-sized banks that serve under-banked communities.

Low risk to earnings or discount rate from ESG issues. Are reducing carbon footprint by reducing its datacentres from 45 in 2017 to 27 in 2019 with target of 14 in 2021.

Reduces carbon and costs.

Not Engaged

Electric Utilities,

United States IR Issues

(Improving)

Non independent board Chairman.

CEO remuneration has been an issue in regulator disputes.

Accounting flags. Storm outages in August 2020.

Well aligned with environmental and decarbonisation megatrends. Enabler of Mitigate Climate Change impact goal.

Electric Utilities,

United States IR Issues

(Improving)

Flags for entrenched board, lacking diversity, CEO remuneration, auditor independence. Aggressive accounting, complex renewables disclosures. Small legacy coal power plants. Very strong on environment.

Exceptionally well aligned with decarbonisation megatrends.

Suitable for sustainable strategies - massive enabler of Mitigate Climate Change impact goal. Acquiring competitor could impact holding.

Multi-Utilities,

United States No Issues

Minor flags for entrenched board, overboarded directors and non- independent Chairman. Company is not differentiated.

Less well aligned with positive environmental trends, but do not see gas assets as ‘risk’ of being stranded medium term. Not as suitable for sustainable strategies as some competitors.

Not Engaged

Electronic Equipment, Instruments, Taiwan

Company

Composition of board members.

Carbon emission target. Ensure consistency among suppliers regarding working conditions.

Workplace health and safety issues.

Overall the company tries to improve ESG issues. For example, the company setting numerical target for carbon emissions. We do not own stock because of non-ESG reasons.

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ESG Analysis (cont'd)

Page 11

Anonymous Name

Contact

Engaged/

Response

Diversified

Telecommunication, Indonesia

Senior

Management No Issues

Board of Commissioner (BOC) doesn't include women. Low female representation at senior management level. In process of calculating carbon footprint.

To launch sustainability report in 2021.

No women on BOC probably reflects long tenure of existing commissioners. Unlikely to change in near term. Low female representation at senior management level is not ideal, but could be industry norm.

Hotels, Restaurants

& Leisure, Hong Kong

IR Issues

(Improving)

Company’s board members don't seem to be well diversified in terms of gender/nationality/

age. Several directors have quite long years of serving and at quite senior age.

Biased board member constitute could be an industry norm, but should be considered to be an area for improvement in long term. Not material for our investment horizon.

Metals & Mining,

South Korea Company

ESG team Issues (Not Improving)

Development Corporate Citizen Committee. ESG initiatives to improve consistency in policies and practices across the group.

Carbon Emission Target. Health Safety. Human Rights. Water.

The company's ESG strategy would be among best in the sector in our universe. We do not own stock due to loomy fundamental of industry (not ESG angle).

Hotels, Restaurants

& Leisure,

Philippines IR Issues

(Improving)

Board composition questionable - no women included, 2 independent out of 7, undivided CEO and Chairman role, low female representation at management level.

No plan about succession and split role of Chairman/CEO, but didn’t disagree to raise independent board members from 2 to 3 in the future.

Still In the process of increasing gender diversification.

Chemicals, Thailand IR No Issues Environmental efforts

development, particularly for PET as main product of the company.

Has made a global commitment to recycle 750k tons of post-consumer PET materials as feedstock into its polyester production per year, invest

$1.5b by 2025, and recycle at least 50b bottles per year.

Technology Hardware, Storage

&, South Korea IR Issues (Improving)

Anti-corruption policies, diversification/independency of board members and

independency of audit and related party committees.

The company has established a Global Anti-Corruption and Bribery Policy in more than 20 languages.

Independent directors are appointed from various fields. Internal system is established.

Transportation Infrastructure, Indonesia

Company ESG team -

Group

No Issues

Board of Commissioner (BOC) - 1 female member out of 6. No clear policy on political donations.

Perceived risk that company needs to do national service at expense of minority investors.

SOE minister shows strong support for women/millennials to be in senior mngt. In process of creating policy to ban political donations. Minority interest should largely be protected by IDX rules.

Semiconductors

& Semiconductor,

Taiwan IR No Issues

Whether they might be willing to share with others to help achieve the goal of mitigate climate change. Whether they are willing to accept help from others to achieve the goal above.

Company has intention to facilitate collaboration and information sharing among companies to improve in areas such as environmental impact.

Anonymous Name

Contact

Engaged/

Response

Interactive Media &

Services, China IR Issues

(Improving)

Long working hours of staff '9-9-6 culture'. Low female representation on the Board of Directors.

High female representation in all seniorities and job natures.

Encourage employees to achieve work-life balance by promoting flexible working arrangements. Both issues are not material.

Semiconductors

& Semiconductor, Taiwan

IR No Issues

No major ESG issues. However, the company merely referred NAM SG to its CSR report instead of answering list of questions prepared, citing lack of time and resources to respond.

Among the few Taiwanese companies to have a female board member. The company is not taking ESG concerns from investors seriously and portfolio managers should be aware of that.

Electronic Equipment, instruments, Taiwan

IR Issues

(Improving)

Hazardous gas rose, even though goal was to reduce it. No female board members.

The company is not taking ESG concerns from investors seriously and portfolio managers should be aware of that.

Semiconductors

& Semiconductor, Taiwan

IR Issues (Not

Improving) Company did not respond to request.

The company is not taking ESG concerns from investors seriously and portfolio managers should be aware of that.

Oil, Gas &

Consumable Fuels, China

IR Issues (Not improving)

Frequency of fatal incidents suggesting lack of adequate safety measures. Corruption incidents overshadow.

Overall not improving. Disclosures slightly improved, but not yet on oil spill compared to peers. Fatalities are still happening and need more disclosures, as well as adequate safety measures.

Real Estate Management &

Devel, Indonesia IR No Issues

Currently does not disclose work place injury statistics.

Management pledges to improve disclosure going forward. No specific gender diversity policy for Board of Commissioners.

Company has working relationship with IFC, which has raised ESG standards. Younger generation family members are pushing for greater board independence and possible independent Chairman in future.

Real Estate Management &

Devel, Hong Kong

IR - Group No Issues

Disclosure: In process of improving IR activity.

Environment: In process of setting target for carbon reduction.

Both points are recognised by the company and now in the process of improvement.

Diversified

Consumer Services,

China IR No Issues

Data protection of students given the leaked incident in the beginning of the year. Lack of female directors.

Company took steps in mitigating data leakage. They are also considering to hire a female independent director. Company will have an ESG report soon and take this very seriously.

Road & Rail,

Singapore IR No Issues

Discussion with company about environmental related concerns for their business model as a public transporter provider.

Moving to greener fleet and energy efficient vehicles.

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ESG Analysis (cont'd)

Page 13

Anonymous Name

Contact

Engaged/

Response

Diversified

Telecommunication, Singapore

IR No Issues Diversified board representation.

Company prepares its business for the impact of climate change and mitigates its carbon footprint through renewable and ongoing organic energy efficiency initiatives.

Banks, Singapore IR Issues (Improving)

Risk management and money laundering concerns, as highlighted by news headlines.

Fiduciary duties to clients and shareholders.

Banks, Singapore IR No Issues Risk management. Fiduciary duties to clients and shareholders.

Hotels, Restaurants

& Leisure, Macau IR Issues (Improving)

Medium term environment target. CEO succession plan.

Related party transaction rule.

Independence of pay committee members.

Issues are not serious. Made good progress on environmental tasks.

Some governance issues should be pointed out, but the company’s board effectiveness seems okay.

Metals & Mining,

Australia IR Issues

(Improving)

Need clarity on tailings dam monitoring and stakeholder engagement procedures (landowners, local communities, government).

Issues an annual sustainability report and targets to reduce carbon emissions. Striving to increase women representation. Tailings dam monitoring and stakeholder engagement procedures in place.

Food & Staples

Retailing, Australia IR Issues (Improving)

Has had labour issues around wage underpayment. Balance between monetization of poker machine revenue and customer care especially for those with gambling addiction.

Issues an annual sustainability report.

Responsible sourcing and food waste reduction procedures in place.

Responsible gaming in focus. Strong women representation. Effort to address wage gaps.

Capital Markets,

Australia IR Issues

(Improving)

Allegations around underpayment from former Bank Advisers. Overall robust corporate governance.

Strong commitment towards responsible lending and investment.

Robust staff training programs despite allegations around underpayment from former staff.

Overall robust corporate governance.

Textiles, Apparel &

Luxury Goo, China IR Issues (Improving)

Low female representation on Board of Directors (BoD).

Renewable energy contribution still low and will work towards lower carbon emission by 2025.

71% of total staff are female and working to increase BoD female representation. Working on developing wind energy in China and solar energy in Vietnam and Cambodia, doing studies at all 3 venues.

Independent Power and Renewables, Malaysia

Senior Management

- Group

Issues (Improving)

Potential risks and opportunities on environmental issues and lack of female board representative(s).

The renewable energy comes from responsibly managed resources and the company is in the process of finding suitable female board representative(s).

Anonymous Name

Contact

Engaged/

Response

Food Products, Malaysia

Company ESG team -

Group

Issues (Improving)

Allegations by Liberty Shared from the USA on labour issues in relation to wages, recruitment method and child labour.

Has policies and procedures in place to address the labour issues but may have not been applied consistently.

Health Care Equipment &

Supplies, Malaysia

Senior

Management Issues (Improving)

Detention order by the U.S.

Customs and Border Protection on two of the company's subsidiaries that make disposable gloves because of foreign labour issues.

Issue is due to retrospective payment of recruitment fees by the foreign workers before the implementation of Zero Cost Recruitment Policy in January 2019. The company has since borne the fees.

Chemicals, Malaysia Issues (Improving)

Vulnerable to financial and litigation risks associated with workplace accidents and fatalities.

Has implemented an OHSAS 18001 certified safety plan with audit provisions, however can continue to improve by setting safety performance metrics or quantified reduction targets.

Not Engaged

Construction

& Engineering, Malaysia

Issues (Improving)

Board does not have an independent majority. Founders control a majority stake in the company.

Has formed a joint venture to provide one-stop solar energy solutions to companies especially those in its own industrial parks.

Not Engaged

Banks, Malaysia No Issues

Company can continue to improve on environmental credit/ESG investment policy.

Overall, the company has strong

governance practices. Not Engaged

Multiline Retail,

Japan Senior

Management Issues (Not Improving)

The board includes too many internal directors and lacks independence. Governance may not be working effectively.

The board includes too many internal directors and lacks independence.

Governance may not be working effectively.

Chemicals, Japan Senior

There is no outside director who is strong in finance despite the conglomerate. Governance may not be working effectively.

There is no independent director who is strong in finance despite the conglomerate. Governance may not be working effectively.

Chemicals, Japan Corporate

Action Issues (Improving)

The company announced the reorganisation of joint ventures in Asia, of which we had pointed out the need of restructuring of complicated capital relations.

This is the result of NAM's engagement.

The company announced the reorganisation of joint ventures in Asia, of which we had pointed out the need of restructuring of complicated capital relations. This is the result of NAM's engagement.

Not Engaged

Oil, Gas &

Consumable Fuels, Japan

Company

Despite the issuance of CB, there are no human resources who can evaluate the price of derivatives.

Due to conflicts of interest, it is urgent to appoint an outside director with financial experience.

Despite the issuance of CB, there are no human resources who can evaluate the price of derivatives. Due to conflicts of interest, it is urgent to appoint an outside director with financial experience.

Oil, Gas &

Consumable Fuels, Japan

Company ESG team

Issues (Improving)

Stock price plummeted due to issuance of convertible bonds.

Lack of awareness regarding the fact that the company's thinking is not being conveyed to the stock market.

Stock price plummeted due to issuance of convertible bonds. Lack of awareness regarding the fact that the company's thinking is not being conveyed to the stock market.

(9)

ESG Analysis (cont'd)

Page 15

Anonymous Name

Contact

Engaged/

Response

Chemicals, Japan Senior

Revenue volatility is high compared to other companies, and synergies with the

pharmaceutical business cannot be seen.

Revenue volatility is high compared to other companies, and synergies with the pharmaceutical business cannot be seen.

Entertainment,

Japan Senior

Too much cash accumulation even if we consider their revenue expansion strategy with aggressive investment. Needs commitment to capital efficiency through remuneration, not only to revenue and profit.

Too much cash accumulation even if we consider their revenue expansion strategy with aggressive investment.

Needs commitment to capital efficiency through remuneration, not only to revenue and profit.

Machinery, Japan Senior Management

Bottom line growth is slow despite its top line growth. Unbalanced strategy with no commitment for financial numbers through executive compensation and enthusiastic about SDGs etc.

Pharmaceuticals,

Japan IR - Group Issues

(Improving)

Transfer business to its parent company which will be settled by the deposit with the parent company. While there is a concern about the internal conflicts, they haven't fulfilled accountability.

Transfer business to its parent company which will be settled by the deposit with the parent company.

While there is a concern about the internal conflicts, they haven't fulfilled accountability.

Professional Services, Japan

Company ESG team

Good track records for M&A and new businesses. Reproducibility can be shown by showing contributions to solving social issues.

Chemicals, Japan IR Issues (Not Improving)

Lack of explanation regarding cross shareholding with partnering company and its strategic holding shares.

Chemicals, Japan Senior Management

The company has a complex business portfolio, and the remuneration KPIs are just PL numbers, they aren't properly designed as a commitment.

Electronic Equipment, instruments, Japan

Senior Management

Although it has a cash-rich financial structure, there is not enough explanation about how to use the funds.

Electronic Equipment, instruments, Japan

Senior

Although it has a cash-rich financial structure, there is no outside director who has management experience and there is no link between executive compensation and capital efficiency or stock price.

Anonymous Name

Contact

Engaged/

Response

Auto Components, Japan

Senior Management

Despite its active R&D and capital investment, capital efficiency hasn't improved. They are reluctant in shareholder return and need to improve the awareness for shareholder interests.

(10)

Engagements

Anonymous Name Any investment

consideration NAM's comment on the

engagement Comments/response from

company

Main sub- category of issues raised

Chemicals, Germany

At this stage there is no investment consideration - it is the initial contact in our ongoing engagement project.

We are looking for the company to agree to share information with other companies on ESG matters.

Company explained that the Sustainability Strategy team is focusing on their Carbon Management Program and already engages in various initiatives of associations and with other companies.

Inter-company assistance

Chemicals, United States

Call with the company was positive. They are willing to speak to other companies on what they do and how they incorporate ESG in management compensation drivers.

Company stated that they have no interest in working with other companies.

Chemicals, Netherlands

Willing to engage with other companies after their 2020 Investor day on 4 November.

Oil, Gas &

Consumable Fuels, Britain

Company has pivoted its strategy towards redirection of capital to renewable energy.

We are looking for the company to include environmental matters as drivers of management remuneration.

Environmental data reporting

Oil, Gas &

Consumable Fuels, United States

We are essentially asking them why they have not done what a competitor has announced (new

"green" strategy).

Climate Change Related

Oil, Gas &

Consumable Fuels, United States

We are essentially asking them why they have not done what a competitor has announced (new

"green" strategy).

Specialty Retail, Spain

Company seems to be ahead of peers in most ESG issues.

We talked with a global union about supply chain, labour practices, sustainability and this company (and the apparel industry).

They provided a significant amount of information and their views on the leaders in the industry: this company and European competitor.

Increased oversight (board, reporting, policies)

company

Specialty Retail, Spain

Electric Utilities, United States

Urging the company to work with regulators to speed up the process of closing down its coal power plants.

Rather quick plan - 2 units to change to clean natural gas in 2020, 2 to retire in 2024, 1 in 2025, 1 in 2027 & 1 for which they have no plan yet.

Asking the company to expand on their impact data reporting.

Broadly were very interested to hear about insights of EU investor on sustainability and impact too.

Asking if the company would agree to share information and success stories with other companies on ESG matters.

Willing to connect if we have ideas from non-commercially sensitive angle.

Inter-company Assistance

Building Products, United States

Asking for disclosure/commitment regarding alignment with a 2 degree warming scenario and strategy, as well as greater transparency on methodology of Tonnes of carbon saved from their technology.

Strong prospect of speeding up reporting of emissions data based on our recommendations.

Asking the company for disclosure on how environmental and climate impact is integrated into management remuneration (ideally explicitly as a component).

Very willing to be connected with other companies to hear about their success stories on incorporating environmental and climate impact into management remuneration (hopefully European competitor).

Asking if the company would be interested in collaborating with other companies and hearing their success stories on ESG matters.

Very willing to be connected with other companies to hear their success stories on incorporating environmental impact into management remuneration &

emissions reporting (hopefully European competitor).

Machinery, Britain

Asking the company for disclosure/commitment regarding alignment with a 2 degree warming scenario, as well as greater transparency on methodology of Tonnes of carbon saved by customers.

Happy to set up a call to go through the points raised and answer further questions.

Machinery, Britain

Asking for disclosure on how environmental impact is integrated into management remuneration and better data on the positive impact of water filtration products and broader clean water efforts.

Remuneration

(11)

Engagements (cont'd)

Page 19

company

Machinery, Britain

Asking if company would be interested in collaborating with other companies and hearing out their success stories on ESG matters.

Pharmaceuticals, Britain

Asked the company to explain why they are pulling one of their products, a smoking cessation aid, from the UK market during the Covid-19 pandemic.

Ethical (Health Related)

Electrical Equipment, France

Asking if the company would be interested in collaborating with other companies and sharing their success stories on ESG matters.

Very willing to participate in the inter-company collaboration project. Willing to share information on incorporation of ESG measure in management remuneration.

Multi-Utilities, Britain

Asking the company to start disclosing the impact its operation has had on reducing CO2 emissions within the system and to start disclosing internal metrics such as the MW’s of renewables.

Pharmaceuticals, Britain

Signed collaborative statement and co-led engagement with pharmaceutical companies to discuss supporting access strategies and responsible Covid-19 response.

Collaborative Engagement

Biotechnology, United States

Signed collaborative statement and co-led engagement with pharmaceutical companies to discuss supporting access strategies and responsible Covid-19 response.

Collaborative Engagement

Specialty Retail, United States

Sustainability is a differentiator for a fashion brand. If this company act as they talk regarding E&S, it is likely to strengthen their brands over the long term.

Clarified how they avoided sending unsold inventory to landfill. They sell it to an undisclosed company, who either manages to sell it on or gets it recycled. However does not audit this company.

Company made their Head of Sustainability available for our 1-1 call. Said would get back to us with more information on how decisions are made between them and the 3rd party company they use.

Natural Capital Efficiency Related

Personal Products, Britain

Food & Staples Retailing, United States

company

Beverages, United States

They point out that they already work with many peer companies through trade associations. For example, they list the Better Calories initiative.

Professional Services, Switzerland

Do not see considerable investment risks from ESG assessment (pending feedback from the company on personal data management policy).

Engaged to understand the emissions data and also to press for some consideration of FCF in management metrics in addition to further details on MSCI’s flag regarding data protection policies.

Company dispute MSCI

interpretation of not having certain policies in place, highlight lack of any controversies. Are following up with MSCI directly.

Data Privacy Related

Food Products, Switzerland

Call organised for 18th Nov 2020 with Head of Governance &

Compliance, Senior PA and Head of IR.

Hotels, Restaurants

& Leisure, Britain

Hotels, Restaurants

& Leisure, Canada

Hotels, Restaurants

& Leisure, United States

Sustainability is a differentiator for a fashion brand. If this company act as they talk regarding E&S, it is likely to strengthen their brands over the long term.

Management set the bar very high when they gave us their initial answer as they include what may happen to merchandise sold to online retailers.

Use 'aggregator', i.e. a processor with a giant warehouse, who delivers what this company sells to an off-price store or donate to charity and sends what is left to recycling or to WTE, but no audit?

The issue was brought to the public and investors' attention by RAN (Rainforest Action Network). Matters for brand reputation and therefore brand value.

Company sound like they share our objective and have increased their traceability of wood-derived fibres. Canopy, a charity, is meant to monitor implementation, primarily in Asia.

Canopy's contact at this company has proven elusive, he had cancelled his planned meeting with us in 2019.

Specialty Retail,

United States Brand reputation and therefore brand value.

Partial answer during our call, on floorings only but IR emailed us a few hours later with very helpful disclosure about shelves, units and walls.

New and remodelled stores typically have floors covered by tiles or vinyl. Wood is used much less now, although some subsidiary stores still have wooden floors (e.g. from a certified Ohio supplier).

Summary. Introduction

Responsible

Investing Report

3Q 2020

Introduction

Summary

Of these engagements 7% were focused on Business Strategy, 18% on Social Impact, 27% on Environment, 17%

on Governance, 5% on Financial Strategy and 26% on Dialogue/Disclosure. Of the companies we engaged with, 19 were based in North America, 13 in Europe, 30 Asia ex Japan and 12 within Japan. Responses were received from 57 companies (77% response ratio).

Notes from our Responsible Investing Research

In 3Q20, 20 of our total engagements were directly aligned to one of the identified Impact Goals. Of those 10 were related to Mitigating Climate Change, 7 to Mitigating Natural Capital Depletion and 3 to Eliminating Communicable Disease.

accesstomedicinefoundation.org/news/bridging-the-gap-in-access-to-oxygen-foundation-co-hosts-roundtable-that- identifies-10-key-actions

Responsible Investing Case Study

Making sure companies monitor and ensure working conditions of employees in their supply chains are at a high enough standard is key for their sustainability.

It is a good thing that investors are increasingly aware of reputational risk in this industry. As long-term shareholders, we

believe it is in the best interest of the company to assure the sustainability of its supply chain and make sure all employees

(direct or not) are working under appropriate conditions. This provides benefits in the long term, from avoiding negative

publicity, to increasing flexibility and productivity in the supply chain. We also think this is the right thing to do.

ISS Climate Impact Assessment – Aggregate Global Equities Holdings

Portfolio Overview

Comparison of Global Equity holdings Climate performance relative to the MSCI All Country World Index benchmark as defined by the ISS Climate Impact Assessment.

Climate Scenario Analysis

“Impact Goal” and a focus area for ongoing engagement.

2036

Sustainalytics Engagement (formerly GES International)

Quarterly Statistics

Management as at August 2020.

June – August 2020

184 13

Proxy Voting Record 3Q20

Voting Data

management, or elected to ‘Withhold’ our vote included:

 Voted ‘Against’ the election of a Director at a German Automobile Manufacturer, as the nominee was clearly over boarded

 Voted ‘Against’ the approval of allocation of income at a Spanish Specialty Retail business as the company falls on

"cash rich" watch list and the pay out ratio is less than 50%

ESG Analysis

ESG Analysis (cont'd)

ESG Analysis (cont'd)

ESG Analysis (cont'd)

Engagements

Engagements (cont'd)

Voted ‘Against’ the election of a Director at a German Automobile Manufacturer, as the nominee was clearly over boarded

Voted ‘Against’ the approval of allocation of income at a Spanish Specialty Retail business as the company falls on